Albay Governor Joey Sarte Salceda has urged the Department of Environment and Natural Resources (DENR) in Bicol to suspend the mining operation of Lafayette Mining Corp. in Rapu-rapu following the firm’s move to go under voluntary administration.
Salceda who was recently chosen by President Arroyo as RDC chairman over Gov. L-Ray Villafuerte, said he is determined to push for the mining firm’s closure as a result of the firms declaration of bankruptcy and the option to sell the mining operation to other interested investors.
“I implore the DENR to immediately suspend the permits to mine, mill and transport chemicals granted to Lafayette as it has declared bankruptcy,” Salceda said, as he aired his primary concerns that include among others “the firms financial distress is an absolute proof of bad management and could sacrifice or compromise environmental standards”.
Salceda said the environmental issues to be addressed are: Who would maintain the mines tailing pond once the mining firms cease to operate?; Who will pay the people of Rapu-rapu the P16 million arrears in social development program?.
Salceda urged the DENR to take the responsibility for the integrity of the mine’s facilities to prevent any mishap especially if some mining chemicals are misplaced.
He also warned environment authorities that permits are not automatically restored to its creditors or eventual new interest while waiting for the court to appoint a receiver.
Given the poor track record of Lafayette, Salceda asked the DENR Environment Management Bureau (EMB) to conduct compliance audit on all environmental concerns.
As this developed, DENR Bicol Regional Executive Director Reynulfo Juan said his agency would look into the request for the suspension of mining permits granted to Lafayette.
He said he would first call for a technical conference with the mining firm and asked them to submit a mining rehabilitation plan.
Juan said closing the mining operation would give a bad signal to other probable investors, citing that Lafayette mining had been operational for a year and a half now.
Lafayette Mining Ltd. has sought court protection this week from creditors and declared it would under go voluntary administration.
Carlos Dominguez, chairman and president of Lafayette Philippines, said the firm would file a petition for rehabilitation to continue normal operations to protect all its stakeholders.
The petition is expected to result in a court order instructing the present creditor’s and suppliers to continue their services and transactions with the local companies for as long as they are paid on cash basis.
Payment for existing debts will be suspended until the court has approved a rehabilitation plan that will fairly settle all outstanding debts to ensure the continued operations of the mining company.
